Closing the gap between intention and action: how banks can drive financial wellbeing

In a recent webinar, we explored why traditional banking approaches often fail to activate saving behavior and what actually motivates people to save consistently.

The webinar shared research showing 28% of Brits say they find it difficult to cope with financial pressure.

When someone experiences financial stress, it reduces their cognitive bandwidth. They become less capable of making well-thought-through decisions. Under this kind of pressure, the brain focuses on immediate threats rather than future goals

Money Itself Doesn't Motivate - Dreams Do

Money, per se, is not a strong motivator. What drives people is what the money represents. Motivation exists on a continuum. Intrinsic motivation connects to your values and desires. Extrinsic motivation comes from external consequences or material rewards. Money typically falls into the extrinsic category. People get stressed about the consequences of not having it.

External motivators don't create lasting behavioral change. To help people save consistently, move money from external pressures to internal motivation. Help users think about what they can get with their money. The vacation. The sense of security from a buffer account. These emotional connections create motivation that lasts.

Customers who save for emotionally meaningful goals show higher deposits and stronger relationships. When customers feel purposeful about their savings, banks attract more assets and build loyalty that outlasts promotional offers.

Make Goals Achievable, Not Overwhelming

Self-efficacy (belief in your ability to manage finances) is one of the strongest predictors of financial wellbeing. When people don't believe they can achieve a goal, they feel overwhelmed and procrastinate.

For example, people know they should start retirement savings, but it feels complicated. They push it to next month, then the next. The goal feels too large and too far away.

Breaking savings into smaller goals makes them feasible. But they also need to be emotionally achievable. You can't prescribe what people should stop doing because you don't know their reality or what they truly care about.

Savehacks help make saving feel achievable. Automated mechanisms like 'roundups' found in Doconomy's goal-based savings solutions. Lifestyle inspiration showing how small habit changes accumulate. Fun features like saving money when your favorite sports team scores. These bring levity to a stressful topic.

Higher conversion from intention to action translates to more active savers. Breaking goals into milestones creates momentum, increasing engagement and growing deposits consistently.

Social Connection Normalizes Saving Behavior

Social belonging is one of the strongest motivators humans have. When users can save together (with a spouse toward a shared dream or with friends saving toward a summer trip) it becomes a joint activity. Users motivate each other through shared progress.

Showing users what other people have been dreaming about and saving for normalizes saving behavior. It makes saving part of a shared experience rather than an isolated struggle.

Inspiration works better than prescription. Traditional tools tell people they overspent on restaurants and should cut back. This prescribes what people should feel without knowing what matters to them.

Inspiration shows what could be done while letting users stay in control of what they care about.

Community aspects build trust and belonging. Stronger emotional bonds lead to improved retention and enhanced brand relevance across age groups.

Visualize Progress, Build Momentum

Visualizing and rewarding progress builds self-efficacy over time. Helping users see they're moving toward their goals (celebrating progress, showing they're capable) changes their identity. They begin to see themselves as successful savers.

Positive reinforcement at the right moments matters. When someone saves consistently for the long term, that's the ideal time to recognize their progress and suggest they could invest that money to grow it further.

Consistent savers create stable, growing deposits. Positive reinforcement reduces acquisition costs because retention outperforms acquisition. This creates competitive advantage through genuine engagement.

Moving From Intention to Action

Behavioral science equips banks to empower customers in ways that traditional approaches cannot. Emotional motivation creates stronger pull than interest rates. Achievable goals prevent the paralysis of overwhelm. Social connection normalizes new behaviors. Progress visualization builds the confidence to continue.

When banks integrate these principles into embedded experiences (tools that exist within everyday banking rather than as separate features) they activate saving behavior that benefits everyone. Customers gain financial wellbeing and a sense of purpose in their financial lives. Banks strengthen deposits, increase engagement, and build relevance in a rapidly changing market.

The gap between intention and action closes when you work with human psychology rather than against it.

The behavioral science principles covered here, emotional motivation, achievable goals, and social connection, are just the beginning. Banks that prioritize building customer financial ability see higher savings, stronger loyalty, and reduced default rates.

Download our guide: "Boosting Financial Ability During the Cost of Living Crisis" to discover the practical, science-backed strategies that help customers move from intention to action, creating wins for both your customers and your institution.